Pakistan National Steel Association (PNSA), a representative body of dealers and traders, has announced to stop doing business with the Pakistan Steel Mills (PSM) following the arrest of its members in an alleged corruption case, an official said.

"We have decided to discontinue business with Pakistan Steel Mills for an indefinite period," said Javed Shakoor, General Secretary, PNSA comprising authorised traders and dealers of the PSM.

He said that the Federal Investigation Agency (FIA) has been raiding premises of dealers and traders and arresting them to recover the amount that the mills lost during the tenure of former chairman Moin Aftab Sheikh.

"Imtiaz Lodhi, Acting CEO, PSM, at a meeting with FIA officials and dealers held recently, has categorically said that Pakistan Steel has no claim of recovery against any dealer for the purchases they made during the tenure of ex-chairman," Shakoor said.

Sheikh was PSM chairman from May 2008 to August 2009. Prime Minister Gilani sacked him on the reports of alleged corruption in the mills.

Lodhi told The News that he is unaware of any such move by the dealers. The Pakistan Steel incurred a loss of Rs26 billion during 2009.

Lodhi said that he had already written a letter to the FIA director general and urged him not to arrest dealers for the recovery of the lost amount, but to no avail.

He said that he had proposed the FIA to appoint forensic experts to audit the Pakistan Steel Mills balance-sheet.

If the arrests continued the dealers would stop doing business with the PSM, causing a loss of around Rs70-75 mln per day, he said.

Shakoor said that the consumers of Pakistan Steel and owners of re-rolling mills have also announced to support the association against the harassment by FIA and assured to discontinue business activities with the PSM.

Meanwhile, The News learnt that Chaudhry Rafiq and Ahmed Hussain Jevani, two dealers of Pakistan Steel, were locked up in FIA Crime Circle, Saddar, Karachi on Saturday. Sources said that more dealers are also under FIA custody in corruption case.

Source: The News